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Chinese Companies Caught in Yuan Riptide

Bets by Firms and Individuals on a Rise in Currency Face Losses as Country Changes Tack

China's yuan weakened against the U.S. dollar Monday after the central bank doubled the currency's daily trading band. The WSJ's Jake Lee talks to CIBC's Asia strategist about the effects this move will have on the yuan.

By

Anjani Trivedi

Updated March 17, 2014 11:14 p.m. ET

China's decision to squeeze speculators out of its currency is causing pain for local companies and individual investors.

The yuan fell on Monday to its lowest level in 10 months against the dollar after the government over the weekend doubled the currency's daily trading range. The decision, foreshadowed by months of hints by Chinese officials, followed a weekslong campaign by the country's central bank to weaken the yuan.